I chose to observe a car salesmen for my observation paper who happens to be a friend of mine. The observation took place on a saturday totaling roughly about two hours of observation time involving two different customers looking to purchase a vehicle. The dealership sells both new and used vehicles. During this time I noticed several different sales techniques that were used that I will try to analyze throughout this essay.
The first observation took place on a saturday between the hours of 9:00am to 10:00am. Having been told that weekends are the busiest time I was confident that there would be plenty to observe.
The first customer was a white male I would say in his mid-40's dressed in jeans with a leather jacket. This customer had seen a maroon 1994 mercury sable on their saturday morning showcase that airs at 8:00am. and seemed very interested and anxious to take a look at the vehicle. The first words that were said by the salesmen in his greeting was "how are you doing this morning is there anything that I can help you with" which,was then followed by what seemed to be a firm handshake.
The salesmen then preceded to take the customer out to the lot to show him the vehicle. He th
About a half hour later the customer then returned making an offer of 2, 800 which was refused. The salemen said that they could not budge on the price because the car was on special. He then preciede to take out the N.A.D.A which is a book that is used to determine the worth of a vehicle at i'ts highest cost. (in other words never go by that price unless you want to get ripped off) He then showed the customer the numbers in the N.A.D.A and then consulted with his manager to see if they could possibly go down on the price. The answer was no they had to get $3400 firm. Needless to say the customer did not by the car at least not while I was there.
Lowballing is when the dealer try's to get the customer to give away your trade-in for well under its true value. This is because their profits on the new car are sometimes severely limited by the amount of money banks will lend towards a new car transaction. This is definetly the technique that he was trying to use on this customer. Seeing that he was a younger person and his credit was not a-1 he probably felt that it would be difficult to get him approved resulting in a waste of his time untill he saw the trade in.
The second oberservation took place shortly after the first between the hours of 10:30 and 11:30am. The customer envolved was a young hispanic male in his early 20's. The sales approch for this customer was very different then the previous. This c
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